Presently, loan servicing is a highly decentralized industry, featuring a labyrinth of heterogeneous standards and data formats across a wide variety of Participants including Borrowers, Servicers, Investors, Vendors, and other Persons involved in a loan servicing process.
As a result, even a small change in a status of a given Loan, or an event relating to the Loan, may take a significant amount of time to trickle down to every Participant involved in the Loan and the veracity of information is sometimes less than certain. This may result in various Participants to the Loan taking inconsistent actions based on outdated data. Moreover, Servicers and Investors lose a substantial amount of money each year due to missing loan documentation and regulatory penalties.
The systems generally used by loan Servicers (are fragile, rigid and) use highly outdated mainframe programming languages, many of which were first devised decades ago and provide fragile and rigid user interaction.
A user wishing to view a status of a Mortgage Loan, or to understand reasons behind certain events pertaining to the Mortgage Loan, presently may be charged Click Through fees to access their own data they also may need to be authenticated by a relevant loan service provider and retrieve data from a variety of different locations. Making matters even more complicated, data from different locations may not be consistent.
In addition, the loan servicing industry is a highly regulated one. Each user may be custodian of at least some potentially sensitive data that may be legally protected from disclosure or inadequate data protection.
Relatedly, not all users are permitted to view all data for a Mortgage Loan. For example, while a Borrower should generally be able to see every document pertaining to the Borrower's Loan, the Borrower may not be entitled to listen to a recording between a Lender and Legal Counsel concerning a loan. Similarly, a Vendor providing an appraisal should not have access to all data in the Mortgage Loan serving file, for example, the appraiser may not be privy to a Borrowers Social Security Number, or other Personal data.
Additionally, known loan servicing systems necessarily entail asymmetrical levels of trust. Some Participants may have financial incentives to modify certain documents (or may accidentally do so). Previous systems provide little or no deterrence to document modification.
Mortgage loan Servicers make matters worse by developing proprietary “add-on” technology that causes numerous disparate systems with a propensity to create process gaps and data integrity issues.